NTB tobacco leaf prices monitored: Official

BINTANGNEWS.com –The West Nusa
Tenggara (NTB) administration continues to monitor the purchasing process of
Virginia tobacco leaves produced by local farmers despite a signed agreement
that aims to protect them and their partner cigarette companies from suffering
losses, an official has said.

“In price discussion meetings, we are invited
by cigarette companies to act as an observer and this is mandatory because of
the government’s roles as both regulator and mediator,” the NTB Plantation
Agency’s business development head, Retty Wimartini, said in a recent
interview.

Based on NTB Plantation Agency data, 13
cigarette companies operating in Lombok have partnered with local farmers. Of
the total, only six companies have set a base price for the purchasing of
Virginia tobacco leaves in the regency.

Retty said a price agreement between
cigarette companies and their partner tobacco growers had been mandated in NTB
Regional Regulation (Perda) No. 4/2006 on Virginia tobacco cultivation
and business partnership.

The NTB administration later issued NTB
Governor Regulation No. 2/2007 as an implementing regulation of Perda No.4, she
said.

“Based on an agreement, the base price of the
best quality Virginia tobacco is Rp 39,000 [US$2.96] per kilogram. Several
other companies have decided on lower prices ranging between Rp 34,000 and Rp
35,000, but based on our observations, those prices are not yet inflicting
losses on the farmers,” said Retty.

The data revealed that in this year’s growing
period local farmers have planted 15,000 hectares with Virginia tobacco,
producing about 30,000 tons, about two tons per hectare.***